Stock Analysis of Medix Resources
PRICE: MDIX closed on 01-May-1998 at $0.60 per share.
VALUE: MDIX has a Value of $0.30 per share. Value is a measure of what a stock is currently worth. Value is based upon earnings, earnings growth rate, dividend payments, dividend growth rate, and financial performance. Current interest and inflation rates also play an important role in the computation of Value. When interest and/or inflation rates decrease, Value goes up. When interest rates and inflation increase, Value goes down. Sooner or later a stock's Price and Value always converge.
RV (Relative Value): MDIX has an RV of 0.63. On a scale of 0.00 to 2.00, an RV of 0.63 is poor. RV reflects the long-term price appreciation potential of the stock compared to an alternative investment in AAA Corporate Bonds. Stocks with RV ratings above 1.00 have attractive upside potential. A stock will have an RV greater than 1.00 when its Value is greater than Price, and its Relative Safety (see below) and forecasted earnings growth rate are above average. In some cases, however, a stock's RV will be above 1.00 even though its Value is well below Price. This happens when a stock has an exemplary record of financial performance and an above average earnings growth rate. In this case, the stock is currently selling at a premium, and the investor is banking on future earnings growth to drive the stock's price higher. This information is very useful not only in knowing whether or not a stock has favorable price appreciation potential, but it also solves the riddle of whether to buy high growth, high P/E, or low growth, low P/E stocks.
I believe that RV ratings above 1.00 are required to consistently achieve above average capital gains in the stock market.
RS (Relative Safety): MDIX has an RS rating of 0.68. On a scale of 0.00 to 2.00, an RS of 0.68 is poor. I look at safety from the viewpoint of an equity investor (one who is buying stock of a company) rather than that of a purchaser of debt (one who is lending money to the company). From this perspective, consistency of financial and operating performance, stock price appreciation history, and price volatility are the key factors used in the evaluation of Relative Safety (RS). Debt to equity ratio, capitalization, sales volume, business longevity and other factors are also considered, but to a lesser degree.
A stock with an RS greater than 1.00 is safer and more predictable than the average of all stocks. A stock with an RS less than 1.00 is less predictable and riskier than the average stock.
RT (Relative Timing): MDIX has an RT rating of 1.10. On a scale of 0.00 to 2.00, an RT of 1.10 is good. RT is a fast, responsive, short-term price trend indicator. It analyzes the direction, magnitude, and dynamics of a stock's price behavior over the last 13 weeks; then reflects and projects the short-term price performance of the stock. Once a stock's Price has established a strong trend, it is expected to continue that trend for the short-term. If the trend dissipates, RT will gravitate towards 1.00. Should the price change dramatically, RT will notice the crucial turning point. When warranted, it will explode from a Price low and dive from a Price high.
All stocks are rated on a scale of 0.00 to 2.00. If RT is above 1.00,the stock's Price is in an uptrend. Below 1.00, the stock's Price is in a downtrend.
(VST): MDIX has a VST- rating of 0.85. On a scale of 0.00 to 2.00, an VST of 0.85 is poor. VST-solves the dilemma of balancing Value, Safety and Timing. Stocks with high RV values often have low RS values, or stocks withlow RV and RS values have high RT's. How can we find the stocks with the best combinations of Value, Safety, and Timing?
The classic formula (square root of the sum of the squares) handles this problem. It combines a set of forces into a single indicator for ranking every stock. Stocks with the highest VST-have the best combinations of Value, Safety and Timing. These are the ones to own for above average capital application.
GRT (Growth Rate): MDIX has a GRT of 9 % per year. This is fair. GRT stands for forecasted Earnings Growth Rate in percent per year. Watch GRT trends very carefully. If the GRT trend is up, the stock's Price will likely rise. If the GRT trend is down, the stock's Price will increase more slowly, cease to increase, or subsequently fall.
Recommendation (REC): MDIX has a Hold recommendation. REC reflects the cumulative effect of all the parameters working together. These parameters are designed to help investors buy safe, undervalued stocks which are rising in price, and to avoid or sell risky, overvalued stocks which are falling in price.
STOP-PRICE: MDIX has a Stop-Price of $ 0.60 per share. This is $0.00 or0.0% belowits current closing Price. These Stop-Prices are based upon 13 week moving averages of closing prices, and are fine-tuned according to each stock's fundamentals.
EY (Earnings Yield): MDIX has an EY of 0.03%. This is below the current market average of 4.74%. EY equals 100 x (EARNINGS PER SHARE/PRICE), and is expressed as a percentage.
EPS (Earnings Per Share): MDIX has an EPS of $0.00 per share. EPS stands for leading 12 months Earnings Per Share.
P/E (Price to Earnings Ratio): MDIX has a P/E ratio of 999.00.
GPE (Growth to P/E Ratio): MDIX has a GPE of 0.00. This ratio suggests that This ratio suggests that MDIX is overvalued. Growth to P/E ratio is a popular measure of stock valuation which compares Earnings Growth Rate (GRT) to Price Earnings ratio (P/E). A stock is considered to be undervalued when GPE is greater than 1.00, and vice-versa. VectorVest believes that RV is a much better indicator of long-term value. The RV of 0.63 for MDIX is poor.
DS (Dividend Safety): MDIX has a DS of 0. On a scale of 0 to 99, a DS of 0 is poor. DS is defined as the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future. Stocks with DS values above 50 on a scale of 0 to 99 areabove average in safety.
RISK (Dividend Risk): MDIX does not pay a dividend. All stocks in the VectorVest system that pay dividends are classified as having Low, Medium or High Dividend Risk (RISK). Stocks with DS values above 50 are above average in safety. These stocks are classified as having LOW or MEDIUM RISK. Stocks with DS values below 50 are below average in safety and are classified as having HIGH Risk.
DG (Dividend Growth): MDIX has a DG of 0 percent per year. Dividend Growth is a subtle yet important indicator of a company's historical financial performance and the board's current outlook on the future use of funds.
YSG- (Yield-Safety-Growth Vector): MDIX has a YSG-of 0.00. On a scale of 0.00 to 2.00, an YSG-rating of 0.00 is very poor. Stocks with the highest YSG - values have the best combinations of Dividend Yield, Safety and Growth.
VOL(100)s: MDIX traded 618000 shares on 01-May-1998.
AVG VOL(100)s: MDIX has an Average Volume of 277120. Average Volume is 50 day moving average of daily volume as computed by VectorVest.
% VOL: MDIX had a Volume change of 123.0% from its 50 day moving average volume.
OPEN: MDIX opened trading at $0.50 per share on 01-May-1998.
HIGH: MDIX traded at a high of $0.70 per share on 01-May-1998.
LOW: MDIX traded at a low of $0.50 per share on 01-May-1998.
CLOSE: MDIX Closed trading at $0.60 per share on 01-May-1998.
% PRC: MDIX showed a Price change of 0.0% from the prior day's closing price.
MDIX has well below average safety with well below average upside potential. It reflects a stock which is likely to give well below average,inconsistent returns over the long term. |
